In the context of a changing global banking landscape, where branch networks are shrinking, volumes of digital payments are increasing and payments are being processed in seconds, fraudsters are creatively finding new ways to steal from banks and their customers.

• Over half of survey respondents globally experienced increases in both external fraud total value and volume. Increasing fraud typologies globally from 2015 to 2018 include identity theft and account takeover, cyber-attack, card not present fraud and scams.
• The largest proportion of respondents globally said that the total cost, average cost and volume of internal employee fraud detected stayed the same or decreased. This may not, however, present a true picture of internal fraud as many external frauds originate from someone working inside the bank.
• Over half of respondents recover less than 25 percent of fraud losses; demonstrating that fraud prevention is key. Banks are investing in new technologies towards fraud prevention.
• In every region, banks surveyed considered the most significant challenge in fraud risk to be cyber-attacks.
• Banks globally are seeing an increasing trend in scams. Fraudsters are manipulating and coercing customers into making payments to them, bypassing bank controls. 
• Customers are key in the prevention and detection of fraudulent activity on their accounts, particularly to reduce scam losses. More should be done to educate customers about fraud and scams.
• Open Banking is considered a significant challenge in fraud risk by banks, with banks across the globe getting ready to open their doors to third parties to access their customer data.

Fraudsters are becoming more sophisticated and can quickly change and adapt their approaches. Banks, in Australia and globally, need to be agile to respond to new threats and embrace new approaches and technologies to predict and prevent fraud.